Report and Financial Statements 2009 by MAF UK

Mission Aviation Fellowship UK A company limited by guarantee, not having share capital

Company number: 3437446 Registered Charity Number 1064598 in England and Wales Scottish Charity Number SC039107

Report and financial statements for the year ended 31 December 2009

MAF UK Annual Report & Accounts 2009

www.maf-uk.org

Contents Page 1-2 3 4

Message from the Chairman and Chief Executive Report of the Trustees Public benefit Making a global impact: Ensuring safe travel Saving time: saving lives

Powerful partnerships: mission multiplier Flying physical aid for physical need Globally positioned for local needs

Christians who value and serve all Building God’s Kingdom

Empowering communities: building futures

8 -10

Objectives and activities Strategies and significant activities

Future plans

Financial review

Reserves policy, investment powers and policy Structure, governance and management Appointment of Trustees

Trustee induction and training Organisational structure Related parties Internal controls

Risk management

Trustees’ responsibilities in relation to the financial statements Provision of information to auditors

Legal and administrative information

18-19

Independent auditor’s report

Statement of Financial Activities

Balance Sheet

Cash Flow Statement

23-29

Notes to the financial statements

MAF UK Annual Report & Accounts 2009

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Message from the Chairman and the Chief Executive At this time each year, we have an opportunity to look back over the many ways that God has used MAF in His work throughout different parts of the world. Once again, we are struck by the variety of ministries that MAF has been able to support and the enormous difference that MAF flights have made both to whole communities and to individual lives. At one extreme, MAF was able to respond within the critical first 24 hours following the massive earthquake that shook Sumatra, Indonesia, in September. In addition to flying in water and urgent medical and food supplies, MAF flights took aerial survey teams to assess the damage so plans could be made for an effective relief operation. At the other end of the spectrum, MAF was able to help the victim of a car crash in Uganda who sustained severe spinal injuries. The poor road conditions meant he could not make the 125-mile overland journey to hospital in Kampala, but a 55minute flight in an MAF plane took him safely to the medical attention he so badly needed. Truly, we see God’s grace in both large and small challenges. But MAF’s impact is not restricted to responding to crises; our commitment to the world’s most isolated and needy people is long-term. For example, enabled by funding from DFID, MAF continues to support agencies in Bangladesh who are now rebuilding communities and restoring hope to those whose lives were torn apart by a succession of powerful cyclones. Following a recent visit to Bangladesh by UK Government ministers, we received this tribute to MAF’s work: ‘We would also like to commend the vital work that MAF does in Bangladesh, which the UK is proud to support. You provide a crucial lifeline for local NGOs helping the poor and remote, and through your provision of medical evacuation. The relief you deliver to remote populations hit by flood or cyclone saves many lives.’ Douglas Alexander MP, Dept for International Development and Ed Miliband MP, Dept of Energy and Climate Change Clean water and good sanitation are vital for health and MAF’s commitment to improvements in these areas has continued during 2009. MAF has flown pumps, pipes, purification systems and the experienced personnel needed to install them in many different countries including Sudan, Kenya, Tanzania and Madagascar. Other cargo has included wheelchairs for landmine victims in Chad and medical supplies for displaced civilians in war-torn Somalia. However, none of this would be possible without the support and encouragement of our Supporters who pray regularly for MAF and give so very generously. Highlights from our resourcing work in the UK include: · · · ·

Total income of £10.1m (2008: £10.5 million) An additional 12,484 people added to our UK Supporter base (2008 : 9,900) 4 families left the UK to serve with MAF overseas (2008: 2) Our third annual Day of Prayer, under the banner Every tribe, every tongue Page 1

MAF UK Annual Report & Accounts 2009

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We are grateful to God for this incredible support, and recognise these achievements also owe much to the ongoing dedication of our Staff and Volunteers, to whom we once again extend our sincerest thanks. MAF was blessed to receive a Kodiak 100 aircraft, thanks to the generous donation of a Supporter from the British Isles. Before leaving for Kalimantan in Indonesia, we were able to take the Kodiak on tour throughout the UK where Supporters were able to climb aboard and meet members of the MAF team, particularly pilots from the operations. It was a wonderful opportunity for hundreds of Supporters to see this new-generation plane, specially designed for mission flying. The tour enabled us to encourage and thank current Supporters for their ongoing commitment as well as reach new audiences and raise the profile of MAF in the media. MAF’s worldwide work is unquestionably a demonstration of God’s compassion towards the world. We invite everyone who reads this review to become a part of MAF’s work, both prayerfully and financially. Thank you for your support. Yours in Christ

John Quin Chairman

Ruth Whitaker Chief Executive

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MAF UK Annual Report & Accounts 2009

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Report of the Trustees for the year ended 31 December 2009 The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. The Trustees, who are also Directors of Mission Aviation Fellowship UK (MAF UK) for the purposes of the Companies Act 2006, have pleasure in presenting the Report and Accounts for the year ended 31 December 2009. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP 2005) ‘Accounting and Reporting by Charities’ issued in March 2005 in preparing the Annual Report and financial statements of the charity. Public benefit The Trustees of MAF UK confirm that they have had regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties. As illustrated in this Trustees’ Report, MAF UK supports the worldwide work of MAF, which aims to benefit people living in some of the most isolated parts of the world. In many places, there are no roads at all or, if roads do exist, they can become impassable for months at a time due to adverse weather conditions such as heavy flooding. In many countries, insecurity can render road travel highly dangerous. MAF’s fleet of light aircraft take Christian workers, emergency teams, healthcare professionals and supplies into remote areas more safely, quickly and efficiently than any other means. As a result, MAF’s activities benefit two major groups – firstly, the charities, churches and other organisations whose mission it is to reach isolated communities and, secondly, the communities themselves. ‘Only when the plane comes’ – meeting needs where they are the greatest ‘The world's biggest killer and the greatest cause of ill-health and suffering across the globe is extreme poverty.’ WHO Wherever poverty exists, so does great physical need. Nowhere is such poverty and need more difficult to address than in many of the remote areas where MAF operates. Remote communities are often the first to suffer and the last to receive help. They are the first to suffer from famine, water shortages, dying livestock and malnutrition. They are the most difficult to reach with medical care and educational programmes. MAF flies regularly to such remote communities providing a lifeline for isolated people. The MAF planes land on airstrips often built with the assistance of local people where roads cannot reach. Only the plane brings the physical, medical, educational or spiritual help that the people need, and so the reception for an MAF plane is always warm and welcoming. People are isolated without roads and are faced by days of travel or dangerous journeys that prevent them reaching clinics or other help in towns or cities. Yet these are often the people in greatest need. Their very isolation cuts them off from vital aid programmes such as those that combat malaria through the use of treated mosquito nets, tackle the spread of AIDS/HIV through education or reduce unnecessary deaths caused by inadequate prenatal care. Page 3

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‘Every year, some 536 000 women die of complications during pregnancy or childbirth, 99% of them in developing countries.’ WHO 2009 The power of the plane to deliver help to such people makes a world of difference, bringing access to vital baby clinics, immunisations, doctors and nurses, as well as pastors or Bibles to bring hope. ‘Much of the progress in reducing child mortality can be attributed to increased immunisation coverage.’ WHO 2009 For the isolated people who often suffer first and receive help last, who are too far from towns with clinics, too far from roads with vehicles and too far from safety, MAF truly does provide a lifeline. The Trustees here provide a few examples of the work MAF UK supports to demonstrate how the public benefit is delivered. Making a global impact Through the generosity of UK Supporters, MAF UK is able to support the worldwide work of MAF in making a lasting difference in remote communities in more than 30 countries. With such a global presence, MAF is ready to respond to the needs of local people around the world quickly and effectively. Ensuring safe travel Road travel can be highly dangerous in areas affected by conflict, banditry or poor infrastructure. MAF ensures that people and vital supplies reach their destination safely. Travel to war-torn Somalia is highly inadvisable but MAF was able to deliver tons of relief and aid supplies safely for World Vision throughout 2009. This lifeline to Buale and Waajid enabled World Vision to provide basic medical care and essential relief to tens of thousands of Somalis displaced by civil unrest. Political unrest erupted in early 2009 in Madagascar, leading to nationwide riots and forcing many NGO personnel to leave. At the height of the disturbance, an MAF flight safely evacuated a team of aid workers stranded in the south of the island. MAF continues to operate in Madagascar, supporting the work of churches, missions and medical outposts. Saving time: saving lives In remote areas, a flight taking just hours or minutes can save days or even weeks of travel. In an emergency, this can make the difference between life and death. The mountainous terrain in Papua New Guinea makes overland travel extremely difficult or impossible, but MAF aircraft help overcome these geographic barriers. Peggy Mona, who had been in labour for 24 hours, was astonished to see one of our aircraft land at Koinambe so quickly after the evacuation request was sent. After only a few minutes, she and her mother were airborne and on their way to Mount Hagen Page 4

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where they were transferred to the local hospital. Two days later, a healthy baby girl was delivered. The MAF team involved was delighted to help save these two lives out of the thousands that are lost worldwide each day to preventable causes. Powerful partnerships: mission multiplier During the first three months of 2009, Tearfund used our services in southern Sudan more than any other partner organisation. Vast distances and the crippled infrastructure make overland travel time-consuming, tiring and often dangerous. MAF’s partnership with Tearfund enables medical and relief workers and vital goods to reach their bases safely, quickly and efficiently. Tearfund’s projects include primary healthcare, feeding programmes, water and sanitation provision and community empowerment. One beneficiary of MAF’s partnership with Tearfund was ten-year-old Agam. She had been suffering from a fungal infection in her feet since she was three, causing them to swell and become very painful. This condition is treatable if you have access to a pharmacy, but this is so often not the case in Sudan. Tearfund’s clinic in Panthau, stocked with supplies flown in by MAF, was able to give her the help she needed. Without MAF, Tearfund would be unable to help children like Agam. Our monthly shuttle flight from South Africa to Mozambique benefits a number of partner mission organisations. On September’s shuttle was Marjolein Post who flew to assist at Ruama Orphanage for six months. Cargo on the flight included 94kg of nappies and baby clothes for the orphanage children. Avrosaine and her family, who live in Tsarahonenana, a village in north-eastern Madagascar, now have clean water for cooking and drinking thanks to a water pump installed by MAF’s partner Medair. Flown to the village by MAF, the Canzee pump provides clean water for 20 families. In just one year, Medair has installed 100 of the Canzee pumps which make a crucial difference to the lives of remote and impoverished people. Flying physical aid for physical need The community of Laisamis, Kenya, now has a water supply, marking the completion of an 18-month borehole project by Chrisco Church. Chrisco, based in Nairobi, also supports missionary Benson Wanyioke in Laisamis and the building of Mercy Primary School which now has over 320 pupils. MAF flew church members and engineers in support of this practical outreach. In Madagascar, our aircraft have flown equipment for a sustainable method of water purification called SODIS (Solar Water Disinfection), which ensures the people of Anjabetrongo now have clean water, reducing the risk of numerous waterborne diseases. Globally positioned for local needs ‘We can’t believe it. What a miracle!’ wrote Dr Jill Seaman when David Pearce was quickly able to fly 180kg of glucantime medication to combat an outbreak of kalaazar, a deadly parasitic disease, in Old Fangak, an area isolated by swamplands in southern Sudan. ‘Thanks to everyone who made this miracle happen’ Dr Jill Seaman Page 5

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A team of AIM missionaries in Napep, southern Sudan, was relieved that MAF was nearby. On returning from a break, they found themselves accused of ‘stealing rain’ and needed to be flown quickly to safety. MAF was able to help churches and missionaries in Lodwar and Laisamis combat the worst drought in Kenya since 2000. Lack of rainfall had led to a serious shortage of both water and food, as crops failed and cattle starved. MAF aircraft flew in tons of food supplies which were distributed to the wider community. ‘The situation in northern Kenya is extremely serious’ Ruth Moores, MAF Information Co-ordinator Within the critical first 24 hours of the massive earthquake that shook Sumatra, Indonesia, on 30 September, MAF flew in urgent medical, water and food supplies and assisted survey efforts to assess the damage. Positioned there following the 2004 tsunami, MAF was able to begin making vital deliveries for aid and medical agencies before the larger emergency response could arrive. Following the Indonesian government’s request for Operation Blessing International to focus relief efforts on 18 villages surrounding hard-hit Padang, MAF flights helped to set up the base camp in the middle of the area. Christians: who value and serve all MAF values and serves people of all beliefs. Still recovering from the powerful cyclone Sidr in 2007, thousands of people in coastal parts of Bangladesh were severely affected when cyclone Aila hit in May 2009. Many agencies seeking to bring essential relief were greatly helped by our flights to the south, including DFID, Action Against Hunger, Free Christian Churches of Bangladesh and Helen Keller International. MAF Relief Pilot Rune Karlsson reports, ‘There is a lot for MAF to do in this remote area. Without the plane, it is very hard to reach these remote areas.’ A medical mission team flown by MAF aircraft helped seven-year-old Anna who had not been able to hear out of her right ear since she was two. Living in the town of Lusinga on the shores of Lake Victoria in Kenya, there had been very little access to medical care for Anna. But the medical team were able to remove half a bean lodged inside her ear causing Anna and her mother to be overwhelmed with joy. ‘I first want to thank you and all of the MAF staff who assisted in that flight. The pilots were awesome! Each trip provides incredible stories of how God uses us to reveal His love for everyone.’ Dr Jeff Folk, team leader Building God’s Kingdom MAF aircraft helped to transport a Gospel Fire International team for a series of evangelical meetings among the Borana and Rendille people in Moyale and Marsabit, north-eastern Kenya. Becki, wife of evangelist Peter Franz, shares from her time in Marsabit: ‘It was a joy for me to experience afresh how wonderfully God works among us. A young woman came to the meeting every day with her four-year-old son Robert. The little fellow was deaf and dumb from birth. Every day, the mother stood right at the front in tears during the altar call, and every day I prayed with her. On the last evening, we prayed Page 6

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again. To my surprise, he could suddenly hear! The mother started to cry big tears of joy. I cried with her.’ ‘Thank you so much for these flights! I am moved by your passion for the unreached’ Peter Franz, Gospel Fire International Ulaanbaatar Baptist Church mission teams travel with our affiliate Blue Sky Aviation to towns and cities in Mongolia to share the Gospel, encourage local believers and give practical support. A snippet from their recent report of a Bible seminar organised in Tsetseg and Must, Khovd province states: ‘About 60 people received Jesus after those meetings.’ ‘Without BSA, we cannot share Good News with such many people in remote places.’ Ulaanbaatar Baptist Church MAF is committed to working with local churches in promoting peace in areas of trouble and unrest. With the Comprehensive Peace Agreement becoming increasingly fragile in southern Sudan, we flew leaders of the Episcopal Church of Sudan (ECS) to communities devastated by fighting and rebel activity. In November, we flew 47 bishops, canons and priests of ECS to Rumbek to attend a conference to discuss the instability within the county and identify ways in which the Church can promote peace. ‘ECS is committed to doubling the efforts of the Church in bringing peace and reconciliation to our people, working together with the government as a force for unity and love amongst our people who have suffered for so long.’ Archbishop Daniel Deng Empowering communities: building futures The ability of many communities to develop and improve their standard of living is hampered by their isolation, as this bars them from receiving healthcare, education and from engaging with the wider economy. Through working with missions and agencies, our flights are helping communities to help themselves. There was joy in the village of Gorimba, Tanzania, after pilot Eivind Lindtjoern landed a plane there for the first time. This is just one of many airstrips that our Airfield Development Team has been developing with local villagers. It is now possible for a medical team from Haydom Hospital to fly in on a monthly basis to provide vital healthcare. Remote Ampasinambo airstrip was recently completed in the hills of Madagascar where it was normally a two-day walk to reach a doctor. While the team was working on the airstrip, they were able to help a patient get to hospital. Paul Hisson Ramily had been ill for several days with a pain in his side and rapid, shallow breathing. As the runway was still under development, a helicopter flew Paul 30 miles to Marolambo – another airstrip developed and recently upgraded by MAF. Paul was transferred to an MAF aircraft and taken to hospital in the capital Antananarivo. The new airstrip means that the people of Ampasinambo are no longer cut off from essential healthcare and other services. Each year, MAF flies teams from Aid Sudan to remote destinations in Sudan from Uganda. In addition to providing education and healthcare, the teams help to repair wells, carry out veterinary work and share the Gospel. Page 7

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‘Without MAF, we couldn’t do what we do, because Sudan is logistically so difficult to get in and out of.’ Kerry Henderson, Country Director, Aid Sudan In the remote town of Bardai, Chad, around 30 people are injured by landmines every year, many losing one or both of their legs. MAF pilot Greg Vine flew several wheelchairs from WEC International to help these victims. WEC missionary Neil has spent six years at a local orphanage making wheelchairs and, when a group in the USA heard about his efforts, they contributed the various components needed. Greg recalls, ‘When we brought the boxes into town, an elderly man who had had his leg blown off by a landmine hobbled in to see what was going on – he was to be our very first customer. WEC is keen to continue supplying wheelchairs to this region.’ Objectives and activities Charity aims MAF UK’s objective is to support the work of mission aviation, churches, missions, and relief and development agencies so that the love of Christ is shared by word and practical means. The principal operational activity of MAF continues to be the provision of a subsidised aviation service in parts of the world where surface travel is impossible or extremely difficult, by flying people safely, by linking people with information quickly and easily, and by supplying goods and services economically and efficiently. MAF’s services are provided by Christians who use their skills in aviation and other fields to work with national churches, relief and development agencies, missions, hospitals and governments to meet the most pressing of human needs. Objectives for the year To help fulfil these wider aims, our resourcing objectives in 2009 were focused on increasing the awareness of MAF’s work among the UK Christian public in order to recruit new Supporters, encourage prayer support, and increase fundraising income and the number of pilots, engineers and other professionals serving overseas. Specifically the objectives included: Objectives 2009 Total income Launch youth and student initiative Above & Beyond Hold MAF Worldwide Day of Prayer Appoint overseas staff

Target £10m+ Launch

Achieved £10m Launched

October 5

October 4

Strategies and significant activities to achieve objectives To meet the ever-growing needs of MAF’s overseas operations, it is essential that we continue to raise awareness of our ministry and expand our Supporter base here in the UK.

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Initiatives to encourage new Supporters during 2009 included: · · · · ·

Volunteers visiting churches and other groups in their local area Staff and Volunteers attending Christian events and airshows A tour of the UK by our new Kodiak 100 aircraft Reporting MAF’s work in both Christian and aviation publications, as well as other media opportunities including radio interviews The launch of our new website

Volunteers raise the profile of MAF by speaking at churches and other groups, as well as seeking ways to engage local people to support the work through prayer. In 2009, we saw an increase in the Volunteer team across all regions. Volunteer numbers Area Reps England and Wales Scotland Northern Ireland Church Reps England and Wales Scotland Northern Ireland Prayer Group Leaders England and Wales Scotland Northern Ireland

2009 110 58 15 365 165 144 36 26 10

2008 100 51 13 300 159 124 51 25 8

In Scotland Last year saw the conclusion of Scotland’s Operation Sudan campaign. Over the three years, funds raised by the people of Scotland facilitated more than 360,000 nautical miles of flights which delivered much-needed aid to the southern Sudanese people, along with 17,141 passengers and over 1,400,000kg of life-saving supplies. Our heartfelt thanks go to the Volunteer Team and, of course, the Supporters who made the initiative possible through their prayers and financial gifts. We were privileged to enter another partnership with the Church of Scotland Guild. They have adopted our ‘Madagascar Mission Run’ for the next three years. In this exciting project, an aircraft flies monthly from the capital Antananarivo to each of four remote parts of Madagascar, staying for up to two days enabling local flights to totally isolated places. These flights help expand the ministry of both aid agencies and churches. Already, we have been truly overwhelmed by the prayer and financial support from many individual Guilds for this project. During 2009, MAF attended many different gatherings in Scotland ranging from local church fetes to the grand RAF Leuchars Airshow in Fife where the MAF Exhibition Trailer proved to be a great success. At that event alone, nearly 100 new people requested to receive MAF literature and agreed to pray for MAF’s work. Some other highlights from the 2009 events calendar saw MAF at Resurrection Day in Dundee, four SouledOut events in Aberdeen and, Praise Gathering at Glasgow Royal Concert Hall. Through the work of the Scottish Volunteer team, 1,635 new people joined the MAF Supporter team. As the need for prayer increases year on year, so does the need for the team to grow. As usual, a few Volunteers retired in 2009, but overall there was still an increase in the Volunteer team and our first Area Co-ordinator in Scotland Page 9

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was recruited. The number of Area Reps increased from 51 in 2008 to 58 and Church Reps from 159 to 165. Our thanks go to all our Volunteer team members whose efforts contribute to the work of MAF. Across the UK Our team of Volunteers continues to grow, with 1,067 meetings held around the UK in 2009. We are so very grateful for our Volunteers’ dedication and passion for informing and inspiring individuals and groups across the UK with the good news of MAF’s life-saving ministry. Our third annual Day of Prayer was held in the autumn and a total of 531 churches across the UK took part, using our specially prepared materials under the theme Every tribe, every tongue to guide their prayers for MAF’s worldwide ministry. The generosity of a Supporter in the Isle of Man enabled us to add a Kodiak 100 aircraft to our ministry in Kalimantan, Indonesia. En route to its operational destination, the aircraft toured the UK, giving hundreds of Supporters the rare opportunity to see and climb aboard this new-generation plane specially designed for mission flying. Our magazine, newsletters and prayer materials, which are mailed to 68,000 Supporters, were complemented in 2009 with the introduction of electronic communications. This development followed the launch of our new website in April. Youth Above & Beyond In 2009, MAF launched its youth and student initiative Above & Beyond. The priority in 2009 has been ‘getting the word out’ which has been achieved by attending events for young people, students and youth leaders. Consequently, Above & Beyond had a presence at eight major national youth events including Frenzy, Summer Madness and Soul Survivor. They provided great opportunities to introduce the work of MAF to a large number of young people using youth-specific communications and the ever-popular flight simulator game. Above & Beyond has also established a website (www.aboveandbeyondmaf.org) and sends out monthly ecommunications with inspiring MAF stories and information on ways for young people to become involved. Throughout the UK, young people and youth groups are beginning to pray for and raise awareness of the work of MAF. Very little could have been done without establishing a Youth Volunteer team. Above & Beyond has recruited and trained several ‘event Volunteers’ and the first ‘Youth Rep’, who goes around youth groups in her area presenting the work of MAF. A priority in 2010 will be to increase this team significantly. All these efforts have contributed to an exciting year, as more and more young people have been inspired about the work of MAF.

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International staff During 2009, MAF UK continued to use a broad spread of advertising methods to promote the recruitment opportunities within our overseas operations. A total of 186 recruitment packs were sent to those who enquired, and two Enquirers Days were held. Vacancies were also promoted at the various events attended by MAF Volunteers and the Exhibition Trailer. From those who enquired in 2009, we hope to see new staff appointed throughout 2010. We currently have four families or individuals preparing for their assignments. In 2009, four individuals and families began working overseas, one of whom had previously served with MAF. Three families left MAF during 2009 to move on to new areas of service back in the UK or overseas. We are truly grateful for their years of dedicated service with MAF. Future plans MAF’s vision is to see ‘isolated people physically and spiritually transformed in Christ’s Name’. We therefore remain committed to holistic mission, meeting the physical and spiritual needs of men, women and children around the world. MAF seeks to serve individuals and communities regardless of culture or religion, and works towards a world where all people have access to the blessings and benefits of God’s love. But the world’s needs are not static and the ever-changing political map means that the demands for MAF’s services are complex, increasing and changing. The problems of unfavourable exchange rates and escalating fuel prices increase the financial pressures across all our operations. In the UK, MAF is responding to these changing needs through its Strategic Goals. During 2010, we aim to help meet the various challenges faced by our operations across the globe through: § § § § § §

Sharing the work of MAF with more people, particularly those who have not heard of MAF before Strengthening our welcome to new Supporters so they know they are valued, and are also inspired and informed by all that MAF achieves Building on our fundraising to help meet the financial challenges of exchange rates and rising fuel costs Finding people with the requisite skills for the varied roles essential to our work Developing our new ecommunications to provide fast, up-to-date news and highlights from MAF overseas and the UK Using new online resources and email updates to enable better-informed prayer.

In 2009, we have seen the great commitment of those who support and serve MAF in so many ways, both here in the UK and overseas. We look to offer the opportunity to be part of MAF to even more people and to welcome them into this exciting and unique mission.

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MAF UK Annual Report & Accounts 2009

Financial review Five-year history Income and expenditure £000 Income Unrestricted donations Legacies Investment income International staff support Other restricted income: Aircraft Fuel Other Total income Expenditure Cost of generating voluntary income Charitable activities – from income Charitable activities – from restricted reserves Charitable activities – from designated reserves Charitable activities – total Governance costs Total expenditure Net incoming/(outgoing) resources Net incoming/(outgoing) resources excluding charitable activities funded from designated reserves

2005

2006

2007 5,441 1,707 209 892

2008 restated 5,606 1,572 135 900

4,656 1,085 117 803

5,269 1,676 157 782

1,300 16 671 8,648

2009 5,971 1,106 19 871

311 3 532 8,730

242 1 663 9,155

25 1,430 864 10,532

1,137 44 917 10,065

1,619 6,130 -

1,658 6,017 -

1,797 6,232 342

2,057 7,692 -

2,146 8,050 -

769

*2,089

6,899 33 8,551

6,017 48 7,723

8,663 21 10,481

7,692 23 9,772

8,050 24 10,220

1,007

(1,326)

760

(155)

866

1,007

763

760

(155)

* This substantial sum was used to fund projects in addition to the budget.

Page 20 sets out the Statement of Financial Activities for MAF UK for the year. The income for the year (Total Incoming Resources) was £10.1m, of which 99% was voluntary income including restricted gifts (2008: £10.5m; 99%). The benefits of tax-efficient giving were again increased through the securing of a further 3,935 Gift Aid Declarations during 2009 (2008: 3,181), bringing the total number of ongoing Declarations to 34,053 (2008: 32,608). Tax claimed on 2009 gifts amounted to £806,575 (2008: £824,723). Investment income fell from £135k to £19k, mainly as a result of the lower rates of interest that are affecting everybody. During the year, the sum of £1,423,000 (note 4) was paid in staff support to 36 staff (note 5) (individuals/families) from the UK serving overseas (2008: £1,391,000 to 36 staff individuals/families). In addition, unrestricted grants of £3,157,000 (note 4) and restricted income of £2,183,000 (note 13) totalling £5,340,000 were passed to sister MAF groups worldwide, primarily to assist in the provision of mission aviation (2008: £5,083,000 including unrestricted grants of £2,758,000 and restricted income of £2,325,000). Page 12

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The assets and liabilities of MAF UK are set out in the Balance Sheet (page 21). All the assets were used directly in the charitable purpose or in a support capacity. ‘Financial Instruments’ are those assets and liabilities of a charity that can be impacted by a third party (e.g. bank deposits, investments, overdrafts, loans, trade creditors etc). At the Balance Sheet date, financial instruments included bank deposits and trade creditors. Trade creditors are paid within 30 days, unless the supplier’s payment terms are less favourable. The Trustees have put in place designated reserves (see below) to provide adequate assurance in respect of liquidity and operational cash flows. Reserves policy It is the Board’s policy to reserve sufficient funds to ensure the ongoing operations of MAF UK. These include a Base Reserve to withstand peaks and troughs in cash flows. Additionally, other designated funds may be created by the Board to help ensure MAF UK’s effectiveness. During the year, a review of risks and reserves was undertaken. Details of all the designated funds are set out in note 12. At the year end, all the reserves were in line with the policy. Principal funding sources Voluntary donations remained the principal source of funding, providing some 99% (2008: 99%) of total incoming resources. Of this, legacy income amounted to 11% (2008: 15%). Investment powers and policy The investment powers of the Trustees are as set out in the Memorandum of Association. The main additions to fixed assets in the year are detailed in note 7. Structure, governance and management Governing document MAF UK is a charitable company limited by guarantee and a registered charity. It is governed by a Memorandum and Articles of Association dated 15 September 1997 and revised in October 2007. In the event of the company being wound up, members are required to contribute an amount not exceeding £10. Appointment of Trustees During the year, the Board welcomed back Rev Anthony Buckley as Trustee and Member. The Trustees are elected by the Board. The number of Trustees may not be less than three, but is not subject to any maximum. Page 13

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One third of Trustees retire at each AGM whether by retirement or rotation. Board decisions are made by majority vote. The number of Members may not be less than two. The Trustees approve membership. Trustee induction and training In the Trustee induction programme, new Trustees are provided with the Governance Manual containing items such as the Memorandum and Articles and recent annual and management accounts as well as a copy of The Good Trustee Guide. They are required to attend a series of meetings and discussions with the Chief Executive and others to learn more about the work and how MAF UK operates. In November the Board held an Awayday to review the findings of the self-appraisal exercise they had undertaken, as well as other governance issues. From time to time, the Board will invite specialists such as the auditors to make a presentation to the Board on matters of interest, such as good governance, to ensure that the Trustees are kept abreast of best practice. Organisational structure The Trustees meet four times a year and are responsible for the strategic direction and good governance of the charity. The Board governance structures include the following subcommittees: · Finance and Fundraising Subcommittee · HR Subcommittee The Board has put in place a Governance Manual which brings all the relevant laws and regulations into one place, which will help to enable the Board to comply fully with the Code of Good Governance. Day-to-day responsibility for the charity’s operations is delegated to the Chief Executive and the Senior Leadership Team. Related parties MAF UK has two subsidiaries, both of which are dormant. MAF UK is a member of MAF International, which is an association of operational and resourcing MAF groups around the world. Internal controls The Trustees have overall responsibility for ensuring that the charity has an appropriate system of controls, financial and otherwise. They are also responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. Page 14

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They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities, and to provide reasonable assurance that: · the charity is operating efficiently and effectively · its assets are safeguarded against unauthorised use or disposition · proper records are maintained and financial information used within the charity or for publication is reliable · the charity complies with relevant laws and regulations. The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include: · a strategic plan and an annual budget approved by the Trustees · regular consideration by the Trustees of financial results, variances from budgets and non-financial performance indicators · delegation of authority and segregation of duties · identification and management of risks. Risk management The Trustees have, with advice from their auditors, introduced a formal risk management process to assess business risks and implement risk management strategies. This involves identifying the types of risks the charity faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying means of managing them. As part of this process, the Trustees have reviewed the adequacy of the charity’s current internal controls. The Trustees are pleased to report that the charity’s internal financial controls, in particular, conform to guidelines issued by the Charity Commission. In addition, the Trustees have considered the guidance for directors of public listed companies contained within the Turnbull Report. They believe that although this is not mandatory for the charity it should, as a public interest body, adopt these guidelines as best practice. Accordingly they have: · set policies on internal controls which cover the following: § consideration of the types of risks the charity faces § the level of risks which they regard as acceptable § the likelihood of the risks concerned materialising § the charity’s ability to reduce the incidence and impact on the business of risks that do materialise § the costs of operating particular controls relative to the benefit obtained. · clarified the responsibility of management to implement the Trustees’ policies and to identify and evaluate risks for their consideration · communicated to employees that they have responsibility for internal control as part of their accountability for achieving objectives · developed systems to respond quickly to evolving risks arising from factors within the charity and to changes in the external environment · included procedures for reporting exceptions immediately to appropriate levels of management and the Trustees, together with details of the corrective action to be undertaken. Page 15

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The major risks are assessed as those most impacting on our fundraising capabilities: · interruption to postal gift income stream through industrial action · interruption to gift processing through potential catastrophe · reputation risk. Trustees’ responsibilities in relation to the financial statements The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with the Companies Act 2006 and for being satisfied that the financial statements give a true and fair view. The Trustees are also responsible for preparing the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to: ·

select suitable accounting policies and then apply them consistently

make judgments and estimates that are reasonable and prudent

state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The Trustees are responsible for keeping adequate accounting records that show and explain the charity’s transactions, disclose with reasonable accuracy at any time the financial position of the charity, and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the Trustees. The Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein. Provision of information to auditors In the case of each of the persons who are Trustees at the time when the Trustees’ report is approved, the following applies: · so far as the Trustees are aware, there is no relevant audit information of which the company’s auditors are unaware

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· the Trustees have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information. Legal and administrative information Trustees John B Quin FCMA Alan R Devereux CBE DL Andrew Cunningham MSc BSc (Hons) Elizabeth Ann Saunders FCIPD BA (Hons) Oxon Rev Anthony Buckley MA (Oxon) (from 17.12.09) Dr Ian Harnett DPhil (Oxon) Stephen Lockley FCA BSc (Hons) John Steel QC

Chairman

Members All Trustees are also Members. Chief Executive Ruth Whitaker BEng (Hons) Company Secretary Alex Finlow FCA MSc Registered Office and principal address 1st Floor, Castle House, Castle Hill Avenue, Folkestone CT20 2TN Auditors BDO LLP, Emerald House, East Street, Epsom KT17 1HS Principal Bankers National Westminster Bank Plc, Europa House, 49 Sandgate Road, Folkestone CT20 1RU Solicitors Girlings, Europa House, 49 Sandgate Road, Folkestone CT20 1TD Company information Company number 3437446 Registered charity number in England and Wales 1064598 and in Scotland SC039107 Website: www.maf-uk.org Date of Incorporation 16 September 1997 Auditors A resolution proposing that BDO LLP be reappointed as auditors of the charity will be put to the Annual General Meeting.

Approved by the Board and authorised for issue on 15 April 2010. John Quin (Chairman) Page 17

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF MISSION AVIATION FELLOWSHIP UK We have audited the financial statements of Mission Aviation Fellowship UK for the year ended 31 December 2009 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes. The financial statements have been prepared under the accounting policies set out therein. This report is made solely to the charity’s Trustees and Members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charity’s Trustees and Members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s Trustees and Members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of Trustees and auditors The Trustees’ (who are also the directors of the company for the purposes of company law) responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and for being satisfied that the financial statements give a true and fair view are set out in the Statement of Trustees' Responsibilities. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, have been prepared in accordance with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 8 of the Charities Accounts (Scotland) Regulations 2006, and give a true and fair view. We also report to you whether in our opinion the information given in the Trustees’ Annual Report is consistent with those financial statements. In addition we report to you if, in our opinion, the charity has not kept adequate and proper accounting records, if we have not received all the information and explanations we require for our audit, or if certain disclosures of Trustees’ remuneration specified by law are not made. We read the Trustees’ Annual Report and consider the implications for our report if we become aware of any apparent misstatements within it. Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Trustees in the preparation of the financial statements, and Page 18

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of whether the accounting policies are appropriate to the charity’s circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. Opinion In our opinion ·

the financial statements give a true and fair view of the state of the charity’s affairs as at 31 December 2009, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended

the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice

the financial statements have been properly prepared in accordance with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006, and

the information given in the Trustees Annual Report is consistent with the financial statements.

Don Bawtree, Senior Statutory Auditor for and on behalf of BDO LLP, Statutory Auditor BDO LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 Epsom United Kingdom Date: 15 April 2010 BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

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Statement of Financial Activities (incorporating an Income and Expenditure Account)

for the year ended 31 December 2009 2009 Unrestricted Restricted funds funds

£000

Incoming resources

£000

2008 Total funds

£000

restated restated Unrestricted Restricted funds funds

£000

Total funds

£000

Note

Incoming resources from generated funds: Voluntary income Donations International staff Legacies 2

5,971 1,021 6,992

2,098 871 85 3,054

8,069 871 1,106 10,046

5,606 1,566 7,172

2,319 900 6 3,225

7,925 900 1,572 10,397

135

7,011

3,054

10,065

7,307

3,225

10,532

Cost of generating funds

2,146

2,057

Charitable activities

5,040

3,010

8,050

4,476

3,216

7,692

7,210

3,010

10,220

6,556

3,216

9,772

Investment income Total incoming resources Resources expended

Governance costs Total resources expended

(outgoing) Net (outgoing) / incoming / incoming resources

Net movement of funds

(199)

(155)

751

760

(199)

(155)

751

760

Reconciliation of funds Total funds brought forward Total funds carried forward

3,921

137

4,058

3,170

128

3,298

3,722

181

3,903

3,921

137

4,058

All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above. The result for the year for Companies Act purposes was a deficit of £155,000 (2008 surplus: £760,000) comprising the net incoming resources for the year plus realised gains on investments.

The notes on pages 23 to 29 form an integral part of these financial statements

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www.maf-uk.org MAF UK Annual Report & Accounts 2009 Company Number 3437446

Balance Sheet as at 31 December 2009 2009

2008

Unrestricted

Restricted

Total

funds

Total Unrestricted funds

funds

£000

Note

Fixed Assets 45

1,273

1,110

Short term deposits

1,716

181

1,897

1,748

137

1,885

Cash and bank

1,240

1,660

4,229

181

4,410

4,518

137

4,655

552

640

Net current assets

3,677

181

3,858

3,878

137

4,015

Total assets less current liabilities

3,722

181

3,903

3,921

137

4,058

Tangible assets

Current Assets Debtors

Total current assets Current liabilities Creditors

The funds of the charity: Base Reserve

2,758

2,979

Other Designated

964

942

3,722

3,921

181

137

3,722

181

3,903

3,921

137

4,058

Total unrestricted income funds Restricted funds

12/13

Total funds Approved by the Board on 15 April 2010

Chairman: The notes on pages 23 to 29 form an integral part of these financial statements

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www.maf-uk.org MAF UK Annual Report & Accounts 2009

Cash Flow Statement for the year ended 31 December 2009

Reconciliation of changes in resources to net cash inflow from operating activities

/ incoming resources Less: Investment income

2009

2008

ÂŁ000

(155) (19) (174)

760 (135) 625

27 (163) (88)

32 152 (162)

(224)

(398)

647

(398)

647

135

(29)

(43)

(408)

739

(12)

814

(420)

1,553

(420)

1,553

Note

(outgoing)Net / incoming (outgoing)

Depreciation charges (Increase)(Increase) / decrease / decrease in debtors (Decrease) (Decrease) in creditors

Changes in resources (outflow) Net cash / inflow (outflow)

/ inflow from operating activities

CASH FLOW STATEMENT Net cash (outflow) / inflow from operating activities Returns on investments and servicing of finance: Capital expenditure and financial investment: Purchase of tangible fixed assets (outflow) Cash/ inflow (outflow)

/ inflow before increase in liquid resources

Management of liquid resources (Increase)(Increase) / decrease

/ decrease in short term deposits

(Decrease) (Decrease) / increase / increase

in cash

Reconciliation of net cash inflow to movement in net funds (Decrease) (Decrease) / increase

/ increase in cash in the year

outflow / (inflow) Cash outflow increase / (decrease)

/ (inflow) from increase / (decrease) in liquid resources

Change in net funds resulting from cash flows

(814)

(408)

739

Balance brought forward 01.01.09

3,545

2,806

Net funds as at 31.12.09

3,137

3,545

Analysis of net funds

Balance 01.01.2009

Cash Flows

Balance 31.12.2009

Cash in hand, at bank

1,660

(420)

1,240

Short-term deposits

1,885

1,897

3,545

(408)

3,137

The notes on pages 23 to 29 form an integral part of these financial statements

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Notes to the financial statements for the year ended 31 December 2009 1. Accounting policies In preparing the financial statements, the charity has adopted Statement of Recommended Practice (SORP 2005). As well as following applicable accounting standards, the financial statements are based on the following policies: (a) Basis of accounting The financial statements have been prepared on the historical cost convention, with the exception of investments which are included at market value. (b) Basis of consolidation The accounts incorporate the financial statements of the charity only as its subsidiary undertakings have immaterial assets and do not trade. (c) Funds · General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes · Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements · Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income and gains are allocated to the appropriate fund where material. (d) Incoming resources All incoming resources are included in the SOFA when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. For legacies, in accordance with SORP para 127, entitlement is recognised when probate has been granted. Where valuation is possible, any such legacies receivable, but not yet received, are accrued in the financial statements. Incoming resources arise solely within the UK. (e) Resources expended · ‘Cost of generating funds’ comprises all services supplied centrally identifiable as wholly or mainly in the support of generating income for this and future periods and include a proportion of central overhead costs · ‘Charitable activities’ includes all costs associated with our international staff (based overseas), direct (grants) and indirect costs of our overseas operations, and the costs associated with informing and educating our Supporters here in the UK about our work

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MAF UK Annual Report & Accounts 2009

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Notes to the financial statements for the year ended 31 December 2009 ·

‘Governance costs’ represent those costs which relate to the management of the fellowship’s assets, organisational administration and compliance with statutory and constitutional requirements

As shown in note 4, support department costs are allocated to the above headings on the basis of pre-apportioned cost allocations.

(f) Foreign currencies Foreign currencies have been translated to sterling as follows: Current assets and liabilities - rate as at 31 December Other amounts - rate at time of transaction All differences are charged to the SOFA. (g) Depreciation Assets with a useful economic life of more than one year and a value in excess of £500 are capitalised. Depreciation on assets is calculated as follows: Equipment and vehicles: charged to write off the expenditure over its expected useful life at 33.33% of the cost per annum. (h) Operating leases Rentals applicable to operating leases are charged to the SOFA over the period in which the cost is incurred. (i) Pensions MAF UK operates a 10% non-contributory defined contribution scheme for its employees. The contributions are paid monthly as they fall due. (j) Transfers between funds Transfers between the Base Reserve and other designated funds are in line with the policies as set out in note 12. (k) Restatement of comparatives Following a reclassification of certain internal costs, minor changes are shown to the 2008 disclosures reflecting a constant method of apportionment.

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www.maf-uk.org MAF UK Annual Report & Accounts 2009

Notes to the Financial Statements for the year ended 31 December 2009 2009

2008 restated

2 Donations

£000

Individuals (excluding legacies) Churches Trusts Companies Governments Other Legacies

£000

5,988 906 525 1,064 375 82 1,106 10,046

6,978 1,046 322 84 301 94 1,572 10,397

135

3 Investment income Interest receivable

2009

2008 restated

4 Total resources expended Cost of generating funds: Voluntary income Donor acquisition Investment management Charitable Activities: International staff Overseas operations * Information and education Governance costs Support departments Management and Personnel Finance and Administration

Overseas operations * grants

Unrestricted

Restricted

£000

sub - total Apportioned

£000

Total £000

1,570 362 1,932

174 40 214

1,744 402 2,146

1,671 386 2,057

596 3,278 362 4,236

827 2,183 3,010

1,423 5,461 362 7,246

158 606 40 804

1,581 6,067 402 8,050

1,542 5,764 386 7,692

21 9,199

368 653 1,021

368 (368) 653 (653) 1,021 (1,021)

7,210

3,010

10,220

9,772

3,157

2,758

Direct costs are allocated to the expenditure categories on the basis of estimated useage. Support department costs are apportioned on the basis of pre-apportioned cost allocations.

Other costs include: Audit fees Operating lease rentals: Land and buildings Vehicles

£000

112 10

104 10

Institutional grants totalling £3,157,000 (2008: £2,758,000) were made during the year to MAF International.

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www.maf-uk.org MAF UK Annual Report & Accounts 2009

Notes to the Financial Statements for the year ended 31 December 2009

2009

2008

£000

5 Staff costs Wages and salaries

2,158

2,182

Social security costs

145

152

Other pension costs

295

271

2,604

2,605

Number

Other benefits

Average number of employees - UK

Average number of employees - Overseas

36 84

Employees with total remuneration and benefits in excess of £60,000: £60,000 - £70,000 £70,000 - £80,000

Number 1

Number 1 -

£000

Pension contributions were

6 Trustees’ emoluments / transactions The Trustees neither received nor waived any emoluments during the year (2008: £NIL) Out of pocket expenses were reimbursed to Trustees as follows:

2009 Number

Travel and communications

2008 Number 2

2009

2008

£000

£NIL

£32,462

As permitted by the Memorandum and Articles, the following payments were made: R Mitty, shareholder (Fundraising Research & Consultancy Ltd) E A Saunders, shareholder (Outset UK Ltd)

Trustee liability insurance The total premium paid by MAF UK for its Trustees 6a Transactions with former trustees and their connected parties Former trustee, R Mitty, became a Special Adviser on 18 December 2008. During 2009, the following out of pocket expenses were reimbursed to him: Travel and communications R Mitty, shareholder (Fundraising Research & Consultancy Ltd)

£8,794

£NIL

2009

2008

£000

2009

2008

£000

1 £92,280

£NIL £NIL Page 26

www.maf-uk.org MAF UK Annual Report & Accounts 2009

Notes to the Financial Statements for the year ended 31 December 2009 7 Tangible fixed assets Vehicles £000

Equipment £000

Total £000

5 5

187 29 (6) 210

192 29 (6) 215

1 2 3

148 25 (6) 167

149 27 (6) 170

2 4

43 39

45 43

Cost

As at 01.01.2009 Additions Disposals As at 31.12.2009 Depreciation

As at 01.01.2009 Charge for year Eliminated on disposal As at 31.12.2009 Net Book Values

As at 31.12.2009 As at 31.12.2008 8 Debtors Amounts due within one year: Other debtors Tax recoverable Prepayments Accrued income 9 Creditors: amounts falling due within one year Trade creditors Taxation and social security Other creditors Accruals and deferred income 10 Financial commitments

At 31 December 2009 the charity had annual commitments under non-cancellable leases as follows: 2009 Land and buildings £000 Expiry date: Within one year Two to five years Over five years

2009

2008

£000

31 594 144 504

156 240 153 561

1,273

1,110

141 37

147 41

311 63

429 23

552

640

2008 Land and Other buildings £000 £000

Other £000

15 9 89

17 -

12 9 89

6 -

113

110

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www.maf-uk.org MAF UK Annual Report & Accounts 2009

Notes to the Financial Statements for the year ended 31 December 2009 11 Analysis of net assets between funds General Designated Total funds funds Unrestricted

£000

Restricted funds

£000

2009

2008

Total funds £000

£000

3,479

750

4,229

181

4,410

4,655

Fund balances as at 31 December are represented by: Tangible fixed assets Current assets Current liabilities Total net assets

(552) 2,927

12 Funds

As at 01.01.09 £000

795

(552) 3,722

Income Expenditure £000

£000

181

Transfers in £000

(552)

(640)

3,903

4,058

Transfers out £000

As at 31.12.09 £000

General funds Base Reserve

2,979

7,011

7,210

(22)

2,758

2,979

7,011

7,210

(22)

2,758

Fixed Asset Fund

192

214

Future Projects Reserve

750

sub-total

942

964

Total unrestricted income funds

3,921

7,011

7,210

137

3,054

3,010

4,058

10,065

10,220

sub-total Designated funds

(22)

3,722

Restricted funds note 13 Total funds

(22)

181 3,903

The Base Reserve comprises risk-assessed income-stream elements to ensure that the charity can continue operations in the event of adverse or unforeseen situations. Three to six months’ working capital expenditure (based on next year’s budget) is considered appropriate. The Fixed Asset Fund represents the cost of equipment and vehicles used by MAF UK, purchased from unrestricted funds. The Future Projects Reserve comprises unrestricted income funds not otherwise designated and can be drawn upon at the discretion of the Trustees to enable projects to be undertaken either more quickly than otherwise would be possible, or that might not have been supported by the normal revenue income stream. The trustees have taken a conservative view in light of the future international economic and currency exchange uncertainties. The minimum value is £750,000.

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www.maf-uk.org MAF UK Annual Report & Accounts 2009

Notes to the Financial Statements for the year ended 31 December 2009 13 Restricted funds

‘Restricted’ income arises where a donor has imposed a restriction as to the use of the gift. This table summarises, by major category of restriction, the opening balance, income, expenditure and closing balance for each restricted fund. As at 01.01.2009

Income Expenditure

As at 31.12.2009

Fund Category £000

£000

MAF International plane projects MAF International non-plane projects MAF International staff

1,137 744 37 1,918

MAF Australia MAF Canada MAF Germany MAF Netherlands MAF New Zealand MAF South Africa MAF Sweden MAF Switzerland MAF USA

119 20 13 5 20 88 265

2,183

137

871

827

181

137

3,054

3,010

181

MAF UK International Staff

5202aus 5202can 5202ger 5202net 5202nz 5202sa 5202swe 5202swi 5202usa

1,001

Page 29